UAE: Corporate tax guide on qualifying group relief

Corporate tax guide on relief for transfers within a qualifying group

Corporate tax guide on relief for transfers within a qualifying group

The UAE federal tax authority (FTA) on 3 April 2024 issued a corporate tax guide on relief for transfers within a qualifying group, which covers:

  • Transactions eligible for relief
  • Conditions to be met to be eligible for relief
  • Consequences of electing for the application of relief
  • Circumstances under which relief may be clawed back and the consequences of claw-back
  • Compliance requirements and interactions with other provisions of the UAE corporate tax law

The guide elaborates on different topics that were open to interpretation in the UAE corporate tax law or the Ministerial Decision No. 132 of 2023 on transfers within a qualifying group. Key topics addressed include:

  • Juridical person condition
  • Ownership interest
  • Exempt person and qualifying free zone person status
  • Transfers of assets and liabilities at net book value
  • Exchange of assets and liabilities
  • Transfer of tax losses

Read a May 2024 report prepared by the KPMG member firm in the UAE



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